Ultimate Robertson County Real Estate Investing Guide for 2024

BRRRR stands for “Buy, Rehab, Rent, Refinance, Repeat”. This is a plan to increase your investment assets not just acquire one asset. It is a must that you are qualified to receive a “cash-out” mortgage refinance for the system to work.

When you are done with improving the property, the value must be more than your combined purchase and renovation spendings. Then you pocket the value you created from the property in a “cash-out” refinance. You buy your next house with the cash-out money and begin all over again. You add appreciating assets to your portfolio and rental revenue to your cash flow.

When you’ve built a large portfolio of income producing properties, you may prefer to authorize someone else to manage all operations while you collect recurring income. Discover top Robertson County property management companies by looking through our directory.

Factors to Consider

Population Growth

The rise or fall of the population can signal whether that community is of interest to landlords. An expanding population often indicates ongoing relocation which means new renters. Relocating employers are attracted to rising cities providing job security to people who relocate there. Growing populations maintain a reliable renter mix that can handle rent raises and home purchasers who help keep your investment property prices up.

Property Taxes

Property taxes, just like insurance and maintenance spendings, may be different from place to market and must be considered cautiously when estimating potential profits. Steep property taxes will hurt a property investor’s income. If property tax rates are excessive in a given community, you probably prefer to search elsewhere.

Price to Rent Ratio

The price to rent ratio (p/r) is a signal of what amount of rent can be demanded compared to the market worth of the investment property. An investor can not pay a steep amount for a property if they can only collect a low rent not enabling them to pay the investment off in a realistic timeframe. You need to discover a lower p/r to be confident that you can set your rents high enough to reach good profits.

Median Gross Rents

Median gross rents are an accurate benchmark of the desirability of a lease market under examination. You need to discover a location with stable median rent growth. If rents are declining, you can eliminate that location from discussion.

Median Population Age

Median population age should be nearly the age of a usual worker if an area has a consistent supply of tenants. If people are moving into the district, the median age will not have a challenge staying in the range of the labor force. A high median age shows that the current population is leaving the workplace without being replaced by younger workers relocating there. An active economy cannot be sustained by retired individuals.

Employment Base Diversity

A larger number of employers in the community will improve your chances of better returns. If there are only one or two significant hiring companies, and one of them moves or disappears, it will lead you to lose paying customers and your asset market prices to decrease.

Unemployment Rate

You won’t enjoy a stable rental income stream in an area with high unemployment. People who don’t have a job will not be able to pay for goods or services. Individuals who continue to have workplaces may discover their hours and salaries reduced. Even people who are employed will find it hard to pay rent on time.

Income Rates

Median household and per capita income data is a vital instrument to help you navigate the cities where the renters you prefer are living. Current income statistics will reveal to you if salary raises will allow you to adjust rental rates to meet your investment return expectations.

Number of New Jobs Created

The more jobs are constantly being generated in a region, the more reliable your renter supply will be. The workers who fill the new jobs will need a residence. This enables you to buy more rental assets and backfill existing unoccupied properties.

School Ratings

Community schools can cause a major influence on the housing market in their city. Employers that are thinking about moving need superior schools for their employees. Relocating employers relocate and attract prospective tenants. Homeowners who relocate to the community have a beneficial impact on real estate market worth. Good schools are a key component for a strong property investment market.

Property Appreciation Rates

Real estate appreciation rates are an imperative ingredient of your long-term investment strategy. You need to have confidence that your real estate assets will grow in market price until you need to dispose of them. Weak or decreasing property worth in a city under assessment is inadmissible.

Residential units where tenants reside in furnished accommodations for less than a month are known as short-term rentals. Short-term rental businesses charge a steeper price each night than in long-term rental business. These homes might require more continual care and sanitation.

House sellers waiting to move into a new home, people on vacation, and individuals traveling on business who are staying in the location for a few days like to rent a residence short term. Anyone can transform their residence into a short-term rental with the services given by virtual home-sharing platforms like VRBO and AirBnB. A convenient way to get started on real estate investing is to rent real estate you already possess for short terms.

The short-term property rental venture involves dealing with tenants more often in comparison with yearly rental units. This means that landlords deal with disputes more frequently. Think about handling your exposure with the help of one of the best real estate lawyers in Robertson County KY.

Factors to Consider

Short-Term Rental Income

You must find out how much revenue has to be generated to make your investment financially rewarding. A quick look at a city’s present typical short-term rental prices will tell you if that is a good community for you.

Median Property Prices

When acquiring real estate for short-term rentals, you must calculate how much you can spend. The median price of real estate will tell you if you can manage to be in that city. You can tailor your market survey by looking at the median price in particular neighborhoods.

Price Per Square Foot

Price per sq ft gives a general idea of values when analyzing comparable properties. If you are examining similar kinds of real estate, like condominiums or separate single-family homes, the price per square foot is more consistent. Price per sq ft can be a fast method to analyze multiple sub-markets or residential units.

Short-Term Rental Occupancy Rate

A quick check on the location’s short-term rental occupancy rate will inform you whether there is an opportunity in the site for more short-term rentals. A high occupancy rate shows that an additional amount of short-term rental space is wanted. Weak occupancy rates mean that there are more than enough short-term rental properties in that community.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return can show you if the investment is a practical use of your cash. Take your estimated Net Operating Income (NOI) and divide it by the cash amount you’re ready to invest. The result is a percentage. The higher it is, the faster your invested cash will be repaid and you will start receiving profits. Funded investments will have a stronger cash-on-cash return because you’re spending less of your funds.

Average Short-Term Rental Capitalization (Cap) Rates

Another metric indicates the value of a property as a return-yielding asset — average short-term rental capitalization (cap) rate. An income-generating asset that has a high cap rate as well as charging typical market rental rates has a strong value. Low cap rates reflect higher-priced real estate. The cap rate is computed by dividing the Net Operating Income (NOI) by the listing price or market worth. The percentage you get is the investment property’s cap rate.

Local Attractions

Big festivals and entertainment attractions will draw vacationers who need short-term housing. People visit specific cities to attend academic and sporting events at colleges and universities, be entertained by professional sports, cheer for their children as they compete in fun events, party at yearly festivals, and stop by adventure parks. Famous vacation sites are found in mountain and beach points, near waterways, and national or state parks.

To fix and flip a residential property, you have to buy it for less than market value, conduct any needed repairs and updates, then liquidate it for better market worth. To keep the business profitable, the investor needs to pay below market value for the house and calculate how much it will take to rehab the home.

It is a must for you to know the rates homes are being sold for in the region. The average number of Days On Market (DOM) for homes listed in the region is important. To successfully “flip” real estate, you have to liquidate the rehabbed home before you have to spend money maintaining it.

To help motivated property sellers locate you, list your firm in our directories of cash home buyers in Robertson County KY and property investment companies in Robertson County KY.

In addition, look for top property bird dogs in Robertson County KY. Specialists on our list specialize in acquiring distressed property investment opportunities while they’re still unlisted.

Factors to Consider

Median Home Price

Median home price data is a crucial gauge for evaluating a future investment region. You’re hunting for median prices that are low enough to show investment possibilities in the area. This is a basic feature of a fix and flip market.

If your investigation indicates a quick weakening in property market worth, it might be a sign that you will uncover real estate that fits the short sale criteria. You will be notified about these possibilities by joining with short sale processing companies in Robertson County KY. Uncover more concerning this type of investment explained in our guide How Do You Buy a Short Sale Home?.

Property Appreciation Rate

The changes in property prices in a region are very important. You have to have a city where real estate market values are regularly and continuously ascending. Rapid property value increases could reflect a value bubble that isn’t reliable. You could wind up buying high and liquidating low in an unreliable market.

Average Renovation Costs

Look closely at the potential repair costs so you will understand whether you can achieve your predictions. The time it will require for getting permits and the local government’s requirements for a permit request will also affect your plans. If you have to have a stamped set of plans, you’ll have to incorporate architect’s rates in your budget.

Population Growth

Population growth is a solid indicator of the reliability or weakness of the city’s housing market. If the population is not growing, there isn’t going to be a good source of homebuyers for your properties.

Median Population Age

The median citizens’ age is a contributing factor that you may not have taken into consideration. The median age in the city should be the one of the usual worker. People in the local workforce are the most reliable real estate buyers. Individuals who are planning to exit the workforce or are retired have very particular housing needs.

Unemployment Rate

While evaluating a region for real estate investment, look for low unemployment rates. The unemployment rate in a future investment area should be lower than the national average. If the area’s unemployment rate is less than the state average, that’s an indicator of a good investing environment. Jobless individuals won’t be able to purchase your houses.

Income Rates

The population’s wage statistics show you if the city’s economy is stable. Most home purchasers have to obtain financing to buy a home. Homebuyers’ capacity to be provided a loan relies on the level of their income. Median income will help you determine if the regular home purchaser can buy the property you are going to put up for sale. Search for locations where salaries are growing. If you want to augment the price of your homes, you need to be certain that your clients’ salaries are also growing.

Number of New Jobs Created

Understanding how many jobs are generated per year in the community adds to your assurance in an area’s investing environment. A higher number of residents buy homes when the local economy is adding new jobs. Additional jobs also entice wage earners arriving to the area from elsewhere, which further reinforces the local market.

Hard Money Loan Rates

Real estate investors who flip renovated properties regularly use hard money loans in place of regular financing. Hard money financing products allow these purchasers to take advantage of pressing investment projects right away. Find the best hard money lenders in Robertson County KY so you can compare their costs.

If you are unfamiliar with this financing type, understand more by using our informative blog post — Hard Money Loans Guide for Real Estate Investors.

As a real estate wholesaler, you sign a contract to buy a residential property that some other real estate investors will want. A real estate investor then ”purchases” the contract from you. The real estate investor then completes the acquisition. The real estate wholesaler doesn’t liquidate the residential property — they sell the contract to buy it.

Wholesaling relies on the participation of a title insurance firm that is comfortable with assignment of contracts and understands how to proceed with a double closing. Hunt for wholesale friendly title companies in Robertson County KY in HouseCashin’s list.

To learn how wholesaling works, study our comprehensive guide What Is Wholesaling in Real Estate Investing?. As you select wholesaling, add your investment company in our directory of the best wholesale real estate companies in Robertson County KY. This will help any likely partners to locate you and initiate a contact.

Factors to Consider

Median Home Prices

Median home prices in the community will inform you if your preferred price range is achievable in that location. Since real estate investors prefer properties that are available below market price, you will have to find lower median prices as an implicit tip on the possible source of properties that you may buy for lower than market value.

Accelerated weakening in property prices might lead to a lot of homes with no equity that appeal to short sale flippers. Short sale wholesalers often reap perks from this strategy. However, it also creates a legal liability. Get more details on how to wholesale a short sale home in our complete explanation. When you’ve determined to try wholesaling these properties, be sure to employ someone on the directory of the best short sale legal advice experts in Robertson County KY and the best foreclosure law offices in Robertson County KY to assist you.

Property Appreciation Rate

Median home price dynamics are also important. Real estate investors who plan to hold real estate investment assets will want to see that housing prices are consistently increasing. A weakening median home price will show a poor rental and home-buying market and will eliminate all types of real estate investors.

Population Growth

Population growth numbers are essential for your proposed contract assignment purchasers. If the community is growing, more residential units are required. There are more people who rent and additional clients who buy houses. An area that has a shrinking community will not draw the investors you need to purchase your contracts.

Median Population Age

A good housing market for investors is active in all areas, including tenants, who turn into homebuyers, who move up into bigger houses. This needs a robust, stable employee pool of people who are confident enough to go up in the real estate market. That’s why the location’s median age needs to be the age of skilled workers in the employment market.

Income Rates

The median household and per capita income should be improving in a promising real estate market that real estate investors prefer to work in. If tenants’ and home purchasers’ wages are getting bigger, they can absorb soaring lease rates and real estate prices. Investors avoid places with poor population salary growth stats.

Unemployment Rate

Investors will carefully evaluate the market’s unemployment rate. Late lease payments and default rates are widespread in places with high unemployment. Long-term investors won’t acquire a home in a place like this. Renters can’t move up to property ownership and current homeowners cannot put up for sale their property and go up to a bigger residence. This makes it challenging to find fix and flip investors to acquire your contracts.

Number of New Jobs Created

The number of jobs produced each year is a critical element of the residential real estate picture. Fresh jobs produced lead to an abundance of workers who look for homes to lease and purchase. Whether your client pool is comprised of long-term or short-term investors, they will be drawn to a location with constant job opening generation.

Average Renovation Costs

An imperative variable for your client investors, specifically fix and flippers, are rehab expenses in the location. Short-term investors, like house flippers, will not reach profitability when the acquisition cost and the renovation expenses equal to more money than the After Repair Value (ARV) of the house. The less expensive it is to fix up an asset, the more lucrative the community is for your potential contract buyers.

Investing in mortgage notes (loans) pays off when the loan can be obtained for a lower amount than the face value. By doing this, you become the lender to the first lender’s client.

Loans that are being paid on time are considered performing loans. Performing notes are a consistent generator of passive income. Non-performing loans can be rewritten or you may pick up the property for less than face value through a foreclosure process.

Someday, you could produce a number of mortgage note investments and be unable to manage them without assistance. If this happens, you could pick from the best loan portfolio servicing companies in Robertson County KY which will make you a passive investor.

If you decide to adopt this investment method, you ought to place your business in our list of the best mortgage note buying companies in Robertson County KY. Showing up on our list places you in front of lenders who make desirable investment possibilities available to note investors such as you.

Factors to consider

Foreclosure Rates

Note investors looking for current loans to purchase will hope to uncover low foreclosure rates in the community. High rates may signal investment possibilities for non-performing loan note investors, but they have to be careful. If high foreclosure rates are causing an underperforming real estate market, it might be tough to liquidate the property after you foreclose on it.

Foreclosure Laws

It’s imperative for mortgage note investors to study the foreclosure laws in their state. Are you working with a mortgage or a Deed of Trust? A mortgage dictates that you go to court for approval to foreclose. A Deed of Trust allows the lender to file a notice and start foreclosure.

Mortgage Interest Rates

The interest rate is set in the mortgage notes that are bought by note investors. This is a big determinant in the returns that lenders earn. Mortgage interest rates are critical to both performing and non-performing mortgage note buyers.

The mortgage loan rates quoted by conventional mortgage firms are not the same everywhere. Private loan rates can be a little more than traditional interest rates due to the greater risk taken on by private mortgage lenders.

Mortgage note investors ought to consistently know the current local interest rates, private and traditional, in possible note investment markets.

Demographics

If note buyers are choosing where to buy notes, they research the demographic dynamics from reviewed markets. Investors can learn a lot by studying the size of the population, how many people are employed, how much they make, and how old the residents are.
A youthful expanding area with a vibrant employment base can provide a stable revenue stream for long-term mortgage note investors looking for performing notes.

Non-performing mortgage note investors are interested in related components for various reasons. In the event that foreclosure is necessary, the foreclosed collateral property is more easily sold in a growing real estate market.

Property Values

Mortgage lenders want to find as much equity in the collateral as possible. This increases the possibility that a possible foreclosure sale will make the lender whole. As loan payments reduce the balance owed, and the value of the property increases, the homeowner’s equity goes up too.

Property Taxes

Payments for property taxes are usually paid to the lender simultaneously with the mortgage loan payment. That way, the lender makes sure that the taxes are paid when payable. If the homebuyer stops paying, unless the note holder remits the taxes, they will not be paid on time. If a tax lien is put in place, the lien takes first position over the mortgage lender’s loan.

If property taxes keep increasing, the homeowner’s house payments also keep rising. This makes it hard for financially challenged homeowners to make their payments, and the mortgage loan could become delinquent.

Real Estate Market Strength

A region with increasing property values offers good opportunities for any mortgage note buyer. As foreclosure is an important element of mortgage note investment planning, increasing property values are critical to locating a good investment market.

Vibrant markets often show opportunities for note buyers to generate the initial loan themselves. This is a strong source of revenue for accomplished investors.

A trust operating income-generating real estate and that sells shares to investors is a REIT — Real Estate Investment Trust. Before REITs existed, real estate investing was too pricey for the majority of citizens. Most people currently are able to invest in a REIT.

Investing in a REIT is one of the types of passive investing. REITs handle investors’ risk with a diversified group of properties. Investors are able to liquidate their REIT shares anytime they need. Members in a REIT are not able to recommend or choose real estate for investment. Their investment is limited to the properties chosen by the REIT.

Mutual funds that contain shares of real estate companies are referred to as real estate investment funds. The fund does not hold real estate — it holds interest in real estate businesses. This is another way for passive investors to diversify their portfolio with real estate without the high entry-level expense or exposure. Real estate investment funds are not obligated to pay dividends like a REIT. The value of a fund to someone is the expected appreciation of the value of its shares.

You can find a fund that specializes in a specific type of real estate company, such as residential, but you cannot suggest the fund’s investment real estate properties or markets. You must rely on the fund’s directors to select which markets and properties are selected for investment.